"A huge bond bubble was created, and that will take some time to resolve itself."

Thirty-year Treasury yields jumped from 3.45% in April to 4% in June. Junk bonds spiked from 5.79% in April to 7.72% in June.

Vanguard Group bond manager Gregory Nassour expects trouble. "The market is saying (it) think(s) tapering is going to happen much faster than anticipated and that cash flows are going to get very negative."

"For the umpteenth consecutive month and year," he said, June's report was less than meets the eye. High-paying/good benefit jobs weren't created. They haven't been for years. America's being thirdworldized.

Martin Feldstein's an establishment economist. He's National Bureau of Economic Research (NBER) president emeritus. On July 1, he headlined "The Fed Should Start to 'Taper' Now," saying:

It shouldn't wait. It "should emphasize that the pace of quantitative easing must adjust to the likely effectiveness of the program itself, and to the costs and risks of continuing to buy large quantities of bonds."

"Although the economy is weak, experience shows that further bond-buying will have little effect on economic growth and employment."

Doing so "could have serious adverse effects on bank capital and the value of pension funds."

"In Fed Chairman Ben Bernanke's terms, the efficacy of quantitative easing is low and the costs and risks are substantial."

Where was Feldstein earlier? QE's been ongoing since late 2008. Mortgaged-backed securities (MBS) were bought. QE continued wrongly directed. It's done nothing for economic growth.

Bernanke suggested slowing it weeks earlier. He reiterated doing it in June. He made it conditional on labor market improvement. He said judgment depends on more than the (U-3) unemployment rate.

Year-over-year, there's been "no increase in the ratio of employment to population, no decline in the teenage unemployment rate, and virtually no increase in the real average weekly earnings of those who are employed," said Feldstein.

"The decline in the number of people in the labor force in the past 12 months (way) exceed(s) the decline in the number of unemployed (based on U-3 calculations)."

Real unemployment's the highest in decades. It reflects Depression levels. It's shows a troubled economy. It's getting worse, not better. Half of more of US households are impoverished or bordering on it.

Social safety net protections are eroding when increasing them is vital. Force-fed austerity assures harder than ever hard times. Growing millions are affected.

The longer money printing madness continues, the greater the eventual trouble. Feldstein's partly right. Money printing madness should be slowed en route to ending it altogether. It should be done as quickly as possible.

At the same time, he omitted explaining what matters most. Money printing works when done responsibly. David Stockman was Reagan's Office of Management and Budget Director.

In late 2010, he said:

QE "is injecting high grade monetary heroin into the financial system of the world, and one of these days it is going to kill the patient."

In early 2009, Michael Hudson said America "reached its debt limit and is entering its insolvency phase. We are not in a cycle but (at) the end of an era. The old world of debt pyramiding to a fraudulent degree cannot be restored."

Delaying the inevitable postpones a painful day of reckoning. QE helped wreck America's economy. It didn't have to be this way. Responsible officials would have prevented it. America's not run that way.

Money printing madness reflects one of the greatest disconnects of all time. It robs poor Peter to benefit rich Paul. It prioritizes rising markets. It's done so at the expense of economic and human wreckage.

QE works when used constructively. Money injected responsibly into the economy creates growth. America once was sustainably prosperous. It can be again. It won't be with rogues making policy. Feldstein didn't explain.

Stephen Lendman lives in Chicago. He can be reached at lendmanstephen@sbcglobal.net.

His new book is titled "Banker Occupation: Waging Financial War on Humanity."

http://www.claritypress.com/LendmanII.html

Visit his blog site at sjlendman.blogspot.com.

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